Lessons learned
President Donald Trump’s disastrous tariffs debacle this week tells us a lot. This isn’t just a lesson about policy; it’s also about pressure, dysfunction, and the lasting damage that even a short-lived idea can cause the economy.
Earlier this week, Trump abruptly paused parts of his sweeping new tariff plan — a policy that had already sent markets plummeting, alarmed global allies, and sparked internal revolt. And while Trump’s advisors have been working overtime to spin this whole thing as some sort of successful master plan, let’s be clear: This was not a strategy. This was a collapse, and it offers four key takeaways.
Pressure works
Wall Street revolted. Global leaders warned of consequences. And even some of Trump’s own advisors reportedly scrambled behind the scenes to stop what they feared could spiral into a financial meltdown. It’s hard to know whether Trump blinked because he actually cared that the “reciprocal tariffs” could wreak havoc on American industries and consumers, or because he knew the public had no one else to blame for a potential economic collapse. Either way, it’s a reminder that public pressure, especially when it’s bipartisan and economically grounded, can still move him.
That’s the good news. The bad news? This crisis isn’t over. Trump didn’t get rid of tariffs — he just reduced them. And his whopping 145% cumulative China tariff prompted a swift response from Beijing. Plus, in 90 days, he’s likely to again raise tariffs on countries around the world, armed with a new narrative and maybe an even more damaging version of the same policy.
Trump’s advisors are in for a very rough ride
Trump’s trade representative found out about the pause while testifying before Congress. No warning. No briefing. Just an administration where chaos is the process.
Trump’s team was forced to spend days defending his tariffs as if they were part of a deliberate negotiation strategy. Then that work was completely undermined by Trump telling reporters he reversed course because “people were getting a little bit yippy.”
I do not envy Treasury Secretary Scott Bessent, who reportedly worked to convince Trump to reverse course while simultaneously having to spin his boss’s impulsive decision-making. But it goes without saying that Bessent should’ve seen this coming.
Some damage is already done — and more is coming
Yes, markets briefly bounced back after the pause. But don’t let anyone tell you the harm has been undone.
To state the obvious, investors don’t love when the leader of the world’s largest economy sets about trying to change the global business landscape only to reverse course days later. Even the possibility of economic volatility is enough to spook markets and cause countries to lose confidence in the stability of the U.S. dollar. It could be decades before America regains the trust of its financial partners.
And here’s the most tragic element: This volatility doesn’t hit everyone equally. While most Americans watched their retirement accounts dip, some potentially saw an opportunity. At 9:37 a.m., Trump posted on Truth Social: “THIS IS A GREAT TIME TO BUY!!! DJT.” Less than four hours later, the markets surge after his pause announcement. He later gloated in front of NASCAR drivers visiting the Oval Office that Charles Schwab “made 2.5 billion today” by buying the dip he caused in the stock market.
He’s shifting the goalposts — and getting away with it
Trump’s policy rollout was obviously a disaster. But even now, Trump’s global 10% tariffs remain intact. In fact, they almost look measured, given the alternative. But 10% is still quite high, and could lead to significant price increases for consumers. Add the China fallout to that, and you can see why JP Morgan CEO Jamie Dimon is still warning there’s a 50% chance of recession. Trump has shown he’ll completely blow out the Overton window of our expectations. And in doing so, he’s teeing up more chaos, more volatility, and more damage. But as Sen. Elizabeth Warren said on our show this week, now is the time to call your Republican senators. They know as well as anyone the damage this will cause to the U.S. economy. And they’ve shown they might be willing to break rank.
Someone you should know: Jaime Cook
It can be terrifying to stand up to the Trump administration — especially in a deep red community.
But that’s exactly what Jaime Cook, a public school principal in Sackets Harbor, New York, did when three of her students — in the third, 10th, and 11th grades — were suddenly detained by ICE. Agents had been searching for someone else, but because the children happened to be on the same property, they were swept up in the raid.
This is a small town, and a place where Trump won big in 2024. It also happens to be the hometown of Trump’s border czar, Tom Homan. Cook could have stayed quiet. Instead, she and her teachers sprang into action. They tracked the kids down using ICE’s detainee locator, contacted officials, and organized a public rally that made national headlines.
And when Homan went on local TV to defend the arrests — insisting the kids were being held in an “open-air campus” for their own safety — Cook didn’t hesitate. Her response was clear: “Calling a detention center by another name does not change what it is. We deserve better.”
Less than two weeks after they were taken, the students were released — and back in Cook's classrooms.
It takes guts to stand up to this administration. But across the country, in fights big and small, every day people are standing up for what’s right. And they’re winning.
A race to watch: Cornyn vs. Paxton
If you want a preview of where the Republican Party is headed, look no further than Texas, where Sen. John Cornyn is gearing up to fight for his political life.
Cornyn, the longtime establishment Republican and close Mitch McConnell ally, is being challenged from the right by Texas Attorney General Ken Paxton — a man who was impeached, accused of corruption, and still managed to become a MAGA martyr with the full support of Trump.
This could end up one of the nastiest, most expensive primaries in the country. Cornyn is racing to prove his pro-Trump credentials (he literally posted a photo reading “The Art of the Deal” with the caption “recommended”), while Paxton is calling him a sellout who only “loves Trump” when it’s politically convenient.
Both candidates are vying for Trump’s endorsement, which could upend the race. But even if he doesn’t, this primary is a full-on proxy war between the Republican old guard and the MAGA movement, — and a test of how far right Texas voters are willing to go.
Bottom line: This race isn’t just about who wins. It’s about what kind of Republican Party shows up in 2026 — and beyond.
WATCH
